The Insurance Board for KY Farm Bureau met on July 14. After preliminaries were taken care of, main topics were discussed. As of July 2012:
1. It looks as if the mandatory wind/hail deductible is dead.
a. The 1% wind/hail can still be used if requested by agent or client.
2. Appears all roofs, as of December 1, will be ACV. All exsisting business will changed at renewal.
3. Earthquake: currently in the works, and if approved by the committee of insurance, KFB will write earthquake like TN Farm Bureau does—through a seperate company. This company appears to be Argenia. So, if you write a homeowner’s policy, it would be the same as writing a flood policy. There would be a seperate app to fill out and attach.
4. Autos will now have a built-in five day extension for cancellation.
5. All comp policies will have a $100 minimum deduction.
For some good news now! Our company made $5.2 million profit in May. After the worst storms that have ever hit the state, and into consideration reinsurance, investment income, and other investment streams, it appears our net loss to surplus, as of now, will be $33 million, plus higher costs for reinsurance. As of July 1, KFB stands at 868 million in reserves.
Heads up!!
- All counties to check with your AUS rep because rate changes passed are just on average. You can get and compare state averages to what the increase in your county will be.
- On a state level, memberships are down 10,000 as of June 25 from 2011. Our current growth rate is .33% and the loss ration is at 148.47%.
- For those interested, there are three counties that have an opening for Agency Manager: Rowan County, Barren County, and Bourbon County.
- For those who do or do not know, we have a company within our company, called Novusphere, and we have $40 million in capital in this company.
- Your full association board meeting is set for August 8 in Shelby County.
Have a great month!
Your President,
Mickey Sirls
Thanks for the information Mickey!